R Systems International Limited has informed the Exchange regarding Board meeting held on August 21, 2025.
RSYSTEMS · price
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R Systems International Limited's Board, at its meeting on August 21, 2025, approved the acquisition of 100% equity shares of Novigo Solutions Private Limited, an IT services firm specializing in product engineering and Agentic AI. The upfront cash consideration is INR 400 crore at an implied EV/EBITDA multiple of about 6x, with additional stock consideration tied to future EBITDA achievement (8x of average FY26-FY27 EBITDA). Novigo reported FY25 revenue of INR 2,644 million (43.8% 3-year CAGR) and EBITDA of INR 657 million at a 24.9% margin. The deal will be funded through debt and internal accruals and is expected to be EPS accretive from Year 1. The combined entity will have revenue of around INR 20,619 million (~USD 240M) and EBITDA of INR 3,819 million (~USD 45M), strengthening R Systems' capabilities in Agentic AI and expanding its footprint in the Middle East and southern India (Mangalore, Bengaluru).
This is a strategically significant, scale-accretive acquisition that strengthens R Systems' position in high-growth areas like Agentic AI and product engineering, while expanding its Middle East presence. EPS accretion from Year 1 and an attractive ~6x EBITDA multiple are positives for shareholders, though the deal adds debt on the balance sheet.